Business News

Inflation in Europe edges down again. But will Houthi attacks on ships spoil the relief?

FRANKFURT, Germany (AP) — Inflation is headed down in Europe. The official figure came in at 2.8% on Thursday. That’s more relief for consumers whose paychecks didn’t go as far after inflation peaked at record-high double digits in 2022. The decline also is fueling speculation that it might soon be time for the European Central Bank to start cutting interest rates. But the newfound relief is at risk from attacks on ships in the Red Sea by Yemen’s Houthi rebels. That’s forcing ships carrying goods and fuel to Europe to take longer voyages to avoid the area, raising costs and threatening to slow the decline in inflation.

Like the US Fed, Bank of England is edging toward interest rate cuts — but not quite yet

LONDON (AP) — Just like the U.S. Federal Reserve, the Bank of England is edging toward cutting interest rates — though not quite yet. The United Kingdom’s central bank kept its main interest rate at a near 16-year high of 5.25% on Thursday and indicated that borrowing costs have probably peaked. However, with inflation still too high for comfort, it said it’s too soon to start cutting rates. Bank Gov. Andrew Bailey said there had been “good news” on inflation in recent months but that it’s still double the bank’s goal. Bailey wouldn’t speculate on whether the next move in interest rates would be up or down but gave a broad hint that rates have peaked.

AP-NORC poll finds an uptick in positive ratings of the US economy, but it’s not boosting Biden

WASHINGTON (AP) — U.S. adults are only feeling slightly better about the economy, despite stocks being near record highs and surprisingly strong growth last year. A new poll from The Associated Press-NORC Center for Public Affairs Research finds that 35% of U.S. adults call the national economy good. That’s an uptick from 30% who said so late last year and up from 24% who said so a year ago. While 65% still call the economy poor, that’s an improvement from a year ago, when 76% did. Voters’ confidence in the economy could be the pivotal factor in this year’s election. President Joe Biden is running for reelection in part on the economy. The poll puts his overall approval rating at 38%.

Mark Zuckerberg’s long apology tour: A brief history

SAN FRANCISCO (AP) — Mark Zuckerberg has accumulated a long history of public apologies, often issued in the wake of crisis or when Facebook users rose up against unannounced — and frequently unappreciated — changes in its service. It’s a history that stands in sharp contrast to most of his peers in technology, who generally prefer not to speak publicly outside of carefully stage-managed product presentations. But it’s also true that Facebook has simply had a lot to apologize for. Zuckerberg was back in damage control mode on Wednesday when he apologized to the parents of children exploited, bullied or driven to self harm via social media.

Deutsche Bank will cut 3,500 jobs even as it records $4.5 billion profit last year

FRANKFURT, Germany (AP) — Deutsche Bank says it would cut 3,500 jobs as part of efforts to slash costs by about $2.7 billion through next year. Germany’s largest lender said Thursday that it would seek to streamline its marketing network and computer systems and software as it seeks to cut costs. The bank says the reduction in the number of positions would mostly be for jobs that don’t involve directly dealing with customers. The announcement came alongside the release of annual profit figures showing Deutsche Bank made $4.5 billion last year, a decline of 16% compared with 2022. It was, however, the fourth straight year in which the bank made a profit.

Shell profits plunge last year from a record high as oil and natural gas prices drop

LONDON (AP) — Oil giant Shell saw profits tumble by nearly a third in 2023 as a result of lower oil and gas prices, which had surged the year before in the wake of Russia’s invasion of Ukraine. In a statement Thursday, Shell said its post-tax earnings fell 29%, to $28.3 billion from the previous year’s all-time high of $40 billion. The main reason behind the decline was the fall in energy prices. Shell CEO Wael Sawan says the company had “made good progress” over the year and that it would focus on “more value with less emissions.” Shell also said it’s less affected by attacks on vessels in the Red Sea, which have prompted companies to divert shipments.

More Americans apply for unemployment benefits but layoffs still historically low

The number of Americans filing for jobless benefits rose last week to the highest level in 11 weeks, though layoffs remain at historically low levels. Applications for unemployment benefits climbed to 224,000 for the week ending Jan. 27, an increase of 9,000 from the previous week, the Labor Department reported Thursday. Weekly unemployment claims are seen as a proxy for the number of U.S. layoffs in a given week. Overall, 1.9 million Americans were collecting jobless benefits during the week that ended Jan. 20, an increase of 70,000 from the previous week.

The European Union overcame Hungary veto’s threat to seal a 50 billion-euro aid package for Ukraine

BRUSSELS (AP) — A top European Union official says the 27 EU countries have sealed a deal to provide Ukraine with a new 50 billion-euro support package despite weeks of threats from Hungary to veto the move. The agreement announced by European Council President Charles Michel on financial aid for Ukraine’s war-ravaged economy was reached in the first hour of a summit in Brussels on Thursday. That Hungary so quickly lifted its veto came as a surprise. Prime Minister Viktor Orbán blocked the package’s adoption in December and had threatened to do the same this week. Ukraine’s economy desperately needs propping up nearly two years into the war sparked by Russia’s full-scale invasion. Some leaders accused Orbán of blackmail and playing political games.

AmEx tries to win over grumpy Delta customers with revamped SkyMiles credit cards

NEW YORK (AP) — American Express is rolling out several updates to its Delta SkyMiles credit cards that will give additional benefits to users. AmEx is eager to soothe sore Delta Air Lines customers who have considered abandoning the airline after last year’s SkyMiles loyalty fiasco. The updates unveiled Thursday will also come with a higher annual fee, which AmEx says it believes that the new benefits will more than pay for.

Stock market today: Wall Street points to open higher after biggest single-day downturn 4 months

Wall Street inched higher before the opening bell after the the biggest single-day downturn since September with the Federal Reserve indication cuts to interest rates are not imminent. Futures for the S&P 500 gained 0.4% before the bell Thursday, while futures for the Dow ticked up just 0.1%. The Fed on Wednesday left its main interest rate steady and made clear it doesn’t expect to cut rates until it has more confidence that inflation is locked in closer to its goal of 2%. Align Technology jumped more than 12% after the manufacturer of Invisalign teeth straighteners beat Wall Street’s sales and profit targets.